10:05 - People want to connect and share with family/friends/colleagues. Want rich apps that harness the power of the Internet. Checking in and taking pictures are communication, too.

10:07 - Smartphones today only have basic communications. Everything else is an app. We bring together all the ways you connect and share.

10:08 - Demo from Derek Snyder: showing Mango with more info on live tiles, like notifications of instant messages and SMS. Twitter and LinkedIn are now integrated into the OS. A contact will show Windows Live, Gmail, Facebook, pictures, voicemail.

10:10 - Contact groups: organize people into lists, like family or friends. You can limit yourself to seeing photos from friends. Group communications using regular Facebook and Windows Live chat.

10:12 - One addition showing early here: predictive word input, so you can autocomplete by tapping the word you want to use. Threaded messaging that carries over across services. You just have to press once to switch services.

10:13 - Possible to link e-mail inboxes. Two personal accounts linked, for example, but work can be separate. (Only sort inboxes the way you need to). Mail now has a do-not-forward flag from Outlook.

10:15 - Facebook events now show up on the calendar along with others. Two-way voice interaction in WP7 now, too: you can have something read out by voice as well as dictate it. Showing an example of using it for an SMS message, where even acronyms like BTW work out.

10:17 - Enabling new kinds of apps in WP7 Mango. Smarter approach to apps. On other phones, they're just silos. Grid of icons [note: MS has said this before]. Have to go app by app by app.

10:20 - People-centric app: face detection is built-in. Office hub connects up to Office 365 and SkyDrive's 25GB of storage. You can pull a document from SkyDrive and get an accurate look. Changes won't be "garbled up" when you send them back.

10:24 - Xbox hub has been reworked. Games give you instant resuming; you can play a game like Rise of Glory, take a message, and get back. New hub is redeisgned and has game comparisons for achievements and the like.

10:26 - Showing a British Airways app that takes advantage of XNA code to bring 3D into a non-game app. You can get a 3D view of where your seat location is to see if it's really what you want. App shortcutting also means you can have a home screen tile that goes to a specific point in an app and get the boarding pass right away, not wade through the menus.

10:29 - Talking the new browser. Want to make it much better, but we want to put the full power of the Internet in your hand.

10:33 - Bing is more deeply integrated. Search results have quick cards: movie show times, for example. App connect hands off to apps that are best for completing those searches.

10:35 - For a restaurant, you not only get the location and contact info, but you can find things nearby: places to eat and shop. Find out when concerts are coming up.

10:37 - Showing visual searches: scanning a Miley Cyrus book in Miles To Go turns up search results, including reviews. App connect works here and kicks over to the book's search results in the Kindle app.

10:38 - Recapping Internet: goes beyond the browse. Scraping the web for you with quick cards. "Live like a local" with local scout features (eat, things to see).

10:40 - Lot more than we have time to show. Over 500 new features. Music, calendaring, OneNote, and more. Not going to make you wait. Release available in the fall as a USB sync update.

10:42 - Recapping partners and what they can do: Skype has its app coming [plugged of course because of the Skype deal].

10:42 - More carrier partners, more countries, and lower device prices. Addressable market for Mango is 4X larger than for WP7.

10:44 - Handset makers include LG, Samsung, HTC. This will include 4G phones. New partners: Acer, Fujitsu, ZTE. And of course, deal with Nokia. Mango will be the first OS Nokia uses. Nokia devices using Mango in the labs.

10:44 - Developer tools available today. Fall will be the best yet for us and our partners. Haven't seen anything yet.